Pour milk in a pot and heat it over medium flame. Once it comes to a boil, lower the flame and pour lemon juice or vinegar. You can use either of the two, just make sure you add it little at a time.
After adding the lemon juice stir the milk well and wait for it to curdle. If it doesn’t curdle then pour another tablespoon of lemon juice.
As soon as the milk curdles, turn the flame off and transfer the coagulated milk or chhena into a colander which is lined with a muslin cloth. Rinse it with cold water to stop the cooking process. This will also help in removing the acidity from the chhena and ensure it remains soft.
Squeeze and drain all the whey. Allow it to rest in the colander for 30-40 minutes.
After that open the cloth and tightly wrap it around the chhena like shown in the picture. Then place it on a plate.
Add another plate on top of the wrapped chhena. Then place a large bowl filled with uncooked rice on top. You can actually use any kind of weight in this step. If you like then you can use a heavy mortar and pestle, a marble chakla (Indian rolling board) or a heavy pot.
Allow it to rest for 4-5 hours. After that remove the cloth. Homemade paneer is ready to use.